Hopefully someone on here can advice me on the ins and outs of car finance!

I currently have a Seat Ibiza 1.6 TDI 11 Plate (42,000) on Hire Purchase over 60 months. I think I’m about 12 months into the contract. I owe around £10,000 (£200 a month + higher final payment).

Due to work circumstances, I’m now commuting on motorways quite a lot. Therefore I want to change car to a Vauxhall Astra 2.0 CDTI 61 Plate (36,000). Around £9000 retail price. I’d like to buy this on PCP as over 3 years I will be moving at the end of this time and no longer require a motorway cruiser at the end of the 3 years.

I’m unsure as to how or if I even can change vehicles while locked into HP? Or if any dealer would pay off my HP then put me onto PCP? How much would this end up a month?

Hi Chris. Yes, you can settle your HP now, It’s simply a question of how much you owe vs. how much your car is worth. If you are only 1 year into a 5 year HP, you may find that you owe more than your SEAT is worth, so you would have to pay for any shortfall before you worry about how to set up the finance agreement on your next car. Have a read of this article about settling a PCP early, as the situation for an HP is not too different.